Deliveroo loss widens as sales growth slows

17th Mar 2022 07:36

(Sharecast News) - Deliveroo's annual loss widened as spending on marketing and technology more than offset higher revenue at the food delivery group.

The company also said sales growth would slow markedly in 2022, reflecting uncertainties including rising inflation and the effect of the war in Ukraine.

The pretax loss for the year to the end of December was £298m compared with £213m a year earlier as revenue increased 57% to £1.82bn.

Gross transaction value (GTV) rose 70% to £6.63bn with growth slowing to 46% in the second half from 104% in the first half.

Adjusted earnings before interest, tax, depreciation and amortisation registered a loss of £131m compared with an £11m loss in 2020.

Deliveroo said GTV growth would slow to 15-25% at constant currency in 2022 with stronger growth in the second half than the first. Adjusted Ebitda will be in the range of -1.5% to -1.8% as a percentage of GTV compared with -2% in 2021 and -3.2% in the second half of 2021.

"Adjusted Ebitda was a loss ... as higher aggregate gross profit was offset by increased marketing spend (to drive awareness and new consumers) and investment in technology (scaling the technology team to support future growth)," Deliveroo said.

"Guidance for 2022 reflects current uncertainties, particularly across European markets, due to inflationary pressures, post-Covid consumer behaviour, and the broader geopolitical and economic impacts of the conflict in Ukraine."